Japan Suspends Trading on Two Cryptocurrency Exchanges

Japan Suspends Trading on Two Cryptocurrency Exchanges

Japanese government regulators shuttered two cryptocurrency exchanges te the long-awaited aftermath of the massive Coincheck hack when hundreds of millions of dollars ter digital currency were lost.

FSA Suspends Two Exchanges

Japanese Financial Security Agency (FSA) released a statement outlining regulatory steps it wasgoed taking against cryptocurrency exchanges earlier today. Most prevalent is the order that both FSHO and Bit Station temporarily suspend their business for a month commencing today March 8.

The statement alleges that FSHO “does not have a zindelijk system to monitor trading and has not given training to its employees,” and that an employee at Bit Station has used customer funds for his own trading purposes.

Ter addition, five other exchanges, including Coincheck were ordered to improve their business practices. Thesis steps have bot months te the coming and were prompted by the massive Coincheck hack that resulted te the loss of 530 million worth of NEM cryptocurrency.

The hack wasgoed ruled te part to have bot a result of lax security practices at the company where customer coins were held te online wallets making them lightly accessible to cyber-criminals.

At the time Coincheck said it had planned on moving the coins to a more secure offline wallet but were understaffed and hadn’t yet had the time. The FSA searched Coincheck’s offices and passed down sanctions at the time, promising more to come on March 8.

Effects of Coincheck Hack Stay on

However Coincheck has bot promising to reimburse $400 million to all 260,000 customers since the time of the hack nothing has bot paid out yet and it is still unclear how the funds will be found to do so.

Cryptocurrency exchanges are required to register with the FSA te Japan but at the time of the hack Coincheck wasgoed given an exception to do business while the FSA reviewed it’s application spil it had grandfathered the ruling.

Te February seven plaintiffs – two companies and five individuals – filed a lawsuit against Coincheck seeking compensation for their lost NEM coins. Thesis deeds by the FSA go after a lotsbestemming of speculation te the country’s crypto community overheen security issues within the exchanges. Japan has bot huis to the two largest recorded hacks, Coincheck and the now legendary Mt. Gox.

A more latest controversy overheen the amount of advertising that Japanese exchanges are engaged te displayed that some companies were earmarking much more for billboards and television advertisements than for individual training and security protocols.

Japan is one of the leading countries implementing cryptocurrency at point of sales with overheen Ten,000 business accepting it. The countries most popular exchange bitFlyer has overheen a million users.

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